Context: Nepal has sought international support through the UN Loss and Damage Fund after devastating flash floods caused extensive loss of life and infrastructure. The move reflects the growing demand by climate-vulnerable countries for compensation rather than conventional aid.
Why Were the Flood Impacts So Severe?
- Climate change: The Himalayas, often called the “Third Pole” due to their large ice and freshwater reserves, are experiencing rapid glacier melting, increasing the risk of extreme events such as flash floods and glacial lake outburst floods (GLOFs).
- Infrastructure development: Extensive infrastructure development in the Himalayan region, particularly in Tibet, may increase the vulnerability of fragile mountain ecosystems to extreme events.
- High vulnerability, low emissions: Nepal contributes very little to global greenhouse gas emissions but faces disproportionate consequences from climate change.
Global Responsibility for Climate Change
- The US accounts for about 25% of accumulated atmospheric CO₂, followed by Europe (~20%) and China (~15%).
- India’s contribution is below 4%, while its per-capita CO₂ emissions are about 2 tonnes annually, compared with a global average of around 4.5 tonnes.
- Nepal argues that countries with historically high emissions bear greater responsibility for supporting vulnerable nations.
Aid vs Compensation: Nepal’s Position
Nepal has indicated a shift from seeking traditional aid towards claiming compensation for climate-related disasters.
- Nepal’s Foreign Minister Shishir Khanal argued that the country should not treat climate assistance as charity because its negligible emissions contrast with the severe damage it faces.
- Nepal invoked the principles of legal and moral liability, arguing that major historical emitters should support countries suffering disproportionate climate impacts.
- Khanal specifically mentioned China, the US and India as major emitters with historical responsibility.
- However, Nepal’s Prime Minister Balen Shah thanked India and China for their immediate assistance, while Khanal later clarified that the objective was international cooperation rather than blaming individual countries.
Why India Was Included?
- The inclusion of India, alongside the US and China, has generated debate because India’s historical and per-capita emissions remain significantly lower than those of major developed economies.
- It may also reflect Nepal’s longstanding balancing strategy between its two major neighbours—India and China.
- At the same time, Nepal’s enormous reconstruction and rehabilitation requirements make access to international climate finance increasingly important.
UN Loss and Damage Fund
Loss and Damage Fund: Established under the UN climate process in 2022, it aims to provide financial support to vulnerable developing countries facing economic and other losses from climate-related extreme events, alongside mitigation and adaptation finance.
- Around $822 million has been pledged, but only about $350 million has been allocated for disbursement.
- Contributions are voluntary, limiting the fund’s available resources.
- The UAE has contributed $100 million, while a substantial share of other contributions has come from European countries.
